iNDICA NEWS BUREAU-
About 45% of Indian companies have already implemented or are piloting generative AI in their HR processes, according to a report released Tuesday, September 3.
The report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Boston Consulting Group (BCG) showed that with GenAI, about 93% of companies showed improved efficiency and productivity.
The report, presented at the FICCI Innovation Summit 2024, outlines the transformative changes reshaping the Indian HR landscape, highlighting key strategies for organizations to thrive in a rapidly evolving business environment.
As India’s economy continues to grow, the HR function is undergoing a radical transformation, driven by technological advancements and the need for more inclusive and purpose-driven workplaces.
“Companies are moving beyond the pilot phase with predictive and generative AI, scaling across the HR value chain and investing in developing GenAI expertise. By continuing to evolve and innovate, Indian companies are setting the foundation for purpose-driven and innovative workplaces of the future,” BCG Managing Director Ashish Garg said, as quoted by IANS.
Further, the report showed that a significant 85% of Indian CXOs surveyed believe that environmental, social, and governance (ESG) initiatives are essential or very important in driving HR strategies and aligning organizational culture with broader societal goals.
About 66% agree that environmental responsibility has become significantly more important in the past 1-2 years and are adapting to global and national ESG reporting standards.
“The business landscape is evolving with unprecedented speed, driven by technological advancements, shifting workforce dynamics, and the imperative for sustainability, making the role of Human Resources more critical than ever. By embracing these emerging trends and embedding diversity, equity, and inclusion (DEI) and ESG principles into their core strategies, organizations can build resilient, innovative and purpose-driven workplaces that are well-equipped to meet the challenges of the future,” said Jyoti Vij, Director General, FICCI.
Talent management is another critical area, with 72% of organizations leveraging policy changes to enhance work-life balance, recognizing it as vital for talent retention.
The report noted that Indian companies are also increasingly prioritizing comprehensive programmes to support employee well-being, with 79% offering professional development opportunities and 60% providing mental health support.
This focus is particularly important given that 58% of Indian employees report high burnout rates, highlighting the need for robust wellness initiatives.
